Long Joe Kaeser had delayed the decision. On this Monday afternoon, however, the Siemens chief took advantage of the pretty much last chance, to not damage the reputation of the Munich-based technology group and his own still more: Kaeser is not to the investors ‘ conference to Riyadh travel, which is scheduled to start on Tuesday. To great public pressure after the violent death of journalist Jamal Khashoggi was a Kingdom in the Istanbul Consulate of the Kingdom.
SIEMENS is a reliable and committed partner of The Kingdom and its VISION 2030. But for now, truth needs to be found out and justice applied. Why I am not going to attend #FII2018, read my thoughts here https://t.co/SLnSMu6dvq
— Joe Kaeser (@JoeKaeser) 22. October 2018
must be like How hard Kaeser its decision, the sheer Numbers of business relationships discretion. Siemens employs in Saudi Arabia around 2000 employees, mostly Locals. Five years ago, the group was awarded the contract for the construction of a driverless metro in Riyadh in the value of almost two billion euros. Which is still a work in progress, after the completion of the German to take over the maintenance. In the past year, the sheikhs ordered a power plant with Siemens worth more than € 400 million. At the core of a large gas turbine, for which the market is in other Parts of the world literally collapsed.
At the conference should now come to a further large orders, probably, among other things, the ambitious large-scale project, Neom, the Kaesers age Confidant Klaus Kleinfeld as an Advisor to the Saudi crown Prince and de facto ruler Mohammed bin Salman looked after. The former Siemens and Alcoa CEO Kleinfeld in order Salmans’m building in the desert, on a site of the size of Hesse, a new city of superlatives – for around $ 500 billion.
A “barbaric death”, “hardly credible” explanations
Kaeser imagined, given his friendship to Kleinfeld Recently in Pole Position for the project. The conference in Riyadh should consolidate the good situation, Kaeser provided willingly money and his Image. The group is a Sponsor and one of the eight “strategic partners” of the conference, and Kaeser, personally, one of nine members of the high-level Advisory panel.
Now it might well be that the Saudis Siemens punish by assigning at least a part of the Neom order volume to competitors such as the U.S. rival GE. Since Kaeser is in his personal Statement in unusually clear: Khashoggi had died in a “barbaric death”, the official statement from the Saudis, it was like an interrogation accident, “hardly credible”.
Still, Kaeser has been to be Manoeuvring to ensure that Siemens’ reputation. Others are sovereign to deal with the Situation. Also, the heads of Mastercard and Credit Suisse are members of the Advisory panel, their companies are also sponsors. However, they had cancelled the participation as long as Kaeser is held only to it, but in a manner justified, the more difficult it is to justify its current decision-making than morally-imperative: “If I could nowhere else to go, where people disappear, I might as well stay at home”, Kaeser said last week in Canada.
featured Prominently is the list of Cancellations
For the Saudi Royal family and, in particular, for bin Salman zoomed in to the cancellation of one of the last prominent Western business representative of the immense loss of face. Last year, international group Manager, senior government officials and heads of important institutions such as the International monetary Fund (IMF) romped to the conference. To establish because of the obvious effort, a similar gathering of the global Topeliten, such as the annual world economic forum in the Swiss mountains, has been called the investors ‘ conference, many of the “Davos in the desert”.
IMF Chief Lagarde, crown Prince Salman at the investors ‘ conference in Riyadh, 2017
is Really prominent this year, but the list of Cancellations: in addition to the CEOs of Siemens, Mastercard and Credit Suisse also those of Airbus, JP Morgan Chase, HSBC, Goldman Sachs, Blackstone and Christian Sewing Deutsche Bank stay away from. IMF Chief Christine Lagarde has withdrawn their participation, as well as world Bank President Jim Yong Kim, US Treasury Secretary Steven Mnuchin and government members of the European heavy-weights France and the United Kingdom.
unemployment is high, growth is negative
For Saudi Arabia, but even more to the game than his Image. The Kingdom is dependent, unlike in the past decades, investment. The West is not only required as a purchaser of oil and gas. Because Saudi Arabia gets to feel already now, that the previous economic model of the legendary wealth of the country can not keep long, because it is based on a complete dependence on the Oil and gas industry.
For years, a huge hole in the state budget, the need to fill the Kingdom with his reserves gapes due to the low price of Oil. Numerous subsidies has removed the government already, as well as expensive construction projects, with further consequences for the economy: The unemployment has risen to almost 13 percent in the past year, the economy shrank despite a significant increase in Oil prices by 0.7 percent.
hundreds of billions of dollars to put investors and corporations from the USA and Europe, therefore, according to the will of the ruler of the house in projects and infrastructure. In only a little more than a decade, wants to crown Prince bin Salman to develop a broad-based private sector, to renewable energy and to make Saudi Arabia a technologically leading country. For this so-called “Vision 2030”, the necessary capital could not even by the complete privatisation of the state oil Company Aramco muster, he would, according to the “Wall Street Journal” with approximately 500 billion dollars just as much value, as the Neom project should cost.
Kaesers additional message
in comparison, the foreign direct investment are currently very modest – just $ 1.7 billion in the year 2017, five years earlier, there were at least twelve billion. The investment climate is likely to have been the case, Khashoggi is hardly improved, as the many Cancellations for the conference.
not to be expected That the alleged murder of the journalist will be deterred investors however, in the long term, if at all. Larry Fink, head of the world’s largest asset Manager, Blackrock, said last week, although his participation in the conference. His company, however, made Fink clear, would withdraw not from Saudi Arabia. The British defence group BAE wants to change to the shops with the Kingdom of just as little as the French groups Thales and Total.
Joe Kaeser took the refusal for a further message to the Riad. Only a few sentences after the statement, where there is the Chance to win up to $ 30 billion dollar businesses, he writes: “Siemens has for decades been a reliable Partner of Saudi Arabia, to support his Grand Vision 2030.”